£60m price tag on bedpan firm

BOLTON bedpan maker Verna Group has put itself up for sale with a price tag of at least é60m, but rumours surrounding the firm's impending sale have been circulating in the region's venture capital fraternity for the last few weeks, with some looking to pay between é45m and é50m for the group.

BOLTON bedpan maker Verna Group has put itself up for sale with a price tag of at least é60m.

Rumours surrounding the firm's impending sale have been circulating in the region's venture capital fraternity for the last few weeks, with some looking to pay between é45m and é50m for the group.

But chief executive Bernard Hatton said told the M.E.N a bidder would have to stump up at least é10m more than that to secure a deal.

"Interest in the firm has been considerable from both the private equity community and trade buyers. I am confident a figure of at least é60m will be achieved."

Verna Group, which employs 1,500 people, has a é55m turnover, with profits of around é7m.

The group's core business is infection control. It manufactures a range of pulp-based receptacles including bedpans and urine bottles through its Vernacare business.

It is the UK's market leader and its products are used in around 75 per cent of British hospitals. It also produces a range of medical mattresses and cushions as well as providing community carers for the elderly through its Verna Community Care subsidiary.

Right buyer

Mr Hatton, who has been with the firm for 32 years, added: "Verna Group is an extremely successful business. Over the last 12 months we have received a number of approaches and owe it to our shareholders, some of whom want to see a maturity in their investment, to consider the options.

"That said, we are very conscious that the firm goes to the right buyer".

Possible trade buyers linked with the firm are US giant Cardinal, Synergy Healthcare and Bunzl.

Among the private equity houses thought to be interested are 3i, Barclays Private Equity and Lloyds TSB Development Capital.

One Manchester venture capitalist said: "Verna Group is a phenomenal business. Healthcare is a sexy sector and attracts significant government funding.

"It looks expensive but you can expect to pay a least eight times annual profit for a firm in this sector. There will be a lot of interest, it's going to be a bun fight for this one."

Colin Gillespie, corporate partner at the Manchester office of PricewaterhouseCoopers, is handling the sale.